Not too happy with that response. We will see if I get a call back.
How Form 3554 was populated and how to remove:
Most likely what happened is when you got the portion of your CA state return that says " Credit and Taxes" if you scroll down the page there is a section called "Credit Recapture" and right underneath it says, “New Employment Credit Recapture. Learn More". Clicking start on this portion brings you to a screen that says, “New Employment Credit Recapture". Here you will see "where it says "New Employment Credit Recapture" and there is a box where there must have been a figure inserted, most likely "0" if you did not need this credit. Putting a figure in that box automatically populated that form causing it to now give you errors on the State Return review asking numerous questions about form 3554. Unfortunately, at this point you cannot go to delete a form or even go back to that box and remove the "0" as the only thing that will work is deleting your CA State return and starting over this time making sure that you do not go into the "New Employment Credit Recapture" by selecting start next to it if you do not need to fill out form 3554.
For instructions on how to delete your state return in TurboTax Online please see the TurboTax FAQ below:
For additional information on Form 3554: https://www.ftb.ca.gov/forms/2014/14_3554bk.pdf
HOW CAN I ELIMINATE THE FORM FTB3354 FROM MY TURBO TAX RETURN
It was hard but I figured out how to delete. I'm on Deluxe Desktop, downloaded from online. I'm on a Mac.
Get into the view with the list of forms on the side of the screen. (Not in Easy Step mode).
The form I cared about didn't show up in the lefthand list. So I clicked "Open Form," and a search box appeared. Select "California" from the dropdown, otherwise it won't appear. Search for the form number. (Again, won't appear if I didn't select "California" first, which is terrible.)
The form will open.
Then, go to the menu bar at the top of my Mac (not within Turbotax). Click "Forms." Click "Remove Form."
the solution is here
I went to top toolbar and chose "View" >> "Forms".
I scrolled down the list to the form: it was 'in error' status.
Select the form, then the form appears on the right side. on the right window pane, look down along the bottom of the window. You will see "delete form" option. select button and form is toast.
That solution does not work if you have the online version. There is no "top toolbar" on the online version. In fact, none of the listed solutions work, including the one suggesting deleting the state return and reentering, if you're using the online version and have already paid for the state form.